Energy Action Week
Arcon Housing Association joined over 100 housing associations across the country in Energy Action Week (1–5 September) lobbying their local MPs about unfair prepayment meter charges.
People on pre-payment meters, who are often on low incomes, can pay a premium of up to £90 a year more for gas or electricity than quarterly billed consumers. Citizens Advice also warned,
“We are seeing cases where people are pushed into debt when their meters have not been recalibrated, this despite the fact that in many cases they have opted for a prepayment meter to help them avoid debt.”
Too often, the poorest in society end up paying more for the kind of services most people take for granted.
The prepayment meter premium is an example of this and it needs to end. Housing associations are campaigning for energy suppliers to stop charging prepayment meter customers more than customers who pay by quarterly bill.
In response Minister of State for Energy, Malcolm Wicks MP, said that Ofgem, the energy regulator, was looking at the situation. If Ofgem found that customers were being treated unfairly and the energy suppliers could not resolve the situation by this winter, then the government would legislate to reduce the disadvantage.
Housing associations along with Energywatch are also pressing the government to approve a mandate for smart meters to replace all old meters in England. Smart meters allow suppliers to update the meters remotely so customers will be paying the correct amount for their energy and not go into debt.
On 6th October 2008 published its Energy Supply Probe - Initial Findings Report. The chief executive of Ofgem said:
“Initial findings from our energy market probe give us grounds to demand that companies end practices that hinder customers, especially the vulnerable, from getting the best deal.”
Ofgem has given the companies until December to voluntarily drop prices for prepayment customers.
Amended 13th October 2008
